The International Finance Corporation is working on the establishment of a fund for entrepreneurs in Pakistan, at a time when the government is seeking to attract more private capital and to expand access to financing for businesses. The matter came up during a meeting between Finance Minister Muhammad Aurangzeb and officials of the International Finance Corporation, which was focused on the development of the private sector. During the discussion, the officials briefed the finance minister on the progress made so far towards setting up the entrepreneurs fund, which is aimed at supporting the startup ecosystem of the country. The two sides also exchanged views on ways to mobilize private investment and to improve financing opportunities for businesses operating in Pakistan.
Apart from the proposed fund, the meeting covered potential support from the International Finance Corporation for small and medium-sized enterprises, agriculture, affordable housing and public-private partnerships. Aurangzeb said that improved macroeconomic stability and investor confidence should lead to stronger private investment and business growth. He stressed the need to make financing more accessible and to create better conditions for both local and international investors. The finance minister further said that the domestic financial resources of Pakistan should be complemented by international development finance in order to support productive investment, and he called for more affordable and long-term financing for small and medium-sized enterprises, entrepreneurs, agriculture and housing.
On the subject of affordable housing, the two sides discussed possible financing models for developers, which could help address the supply constraints in the sector. The officials also reviewed the AgriConnect initiative of the International Finance Corporation. The review looked in particular at efforts to attract private financing by improving storage infrastructure and by using electronic warehouse receipts as collateral. Aurangzeb emphasized the need to remove supply-side constraints in the agriculture sector and to give lenders and farmers greater certainty, so that private financing can be attracted more easily.
Public-private partnerships formed another part of the conversation. Officials of the International Finance Corporation updated the finance minister on their work with provincial governments on water and power projects. According to the details shared during the meeting, these projects include efforts to improve water quality and safety, as well as to expand metering infrastructure across distribution companies. The meeting also gave attention to increasing local-currency financing and to developing longer-term funding options for private sector projects, which was presented as a further area of focus alongside the other subjects under discussion.
At the end of the meeting, both sides agreed to continue working together on private sector financing, investment and infrastructure development. The focus of this cooperation will be on expanding access to capital and on mobilizing greater domestic and international investment, in line with the wider objective of the government to attract private capital and to widen financing options for entrepreneurs and businesses across the country.
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